(Bloomberg) – U.S. solar stocks plunged after President Joe Biden’s $1.75 trillion clean energy and economic plan suffered a crucial hit.
Sunrun Inc., the largest US residential solar installer, fell 12% on Monday before paring some of the losses. First Solar Inc., the nation’s top panel producer, fell 8.3% and SunPower Corp. 9.8%. The moves mirror declines in solar vendors trading in China on Monday.
The crisis comes after Sen. Joe Manchin surprised the White House and his fellow Democrats on Sunday by announcing his opposition to the Build Back Better Act, which would have included a record $550 billion for climate action, including credits for key tax for renewable energy. Manchin’s opposition is a serious setback for Biden’s ambitious efforts to boost clean energy in the United States
“The bottom line is that cleantech companies in the U.S. market cannot rely on a ten-year extension of wind and solar tax credits, a more generous electric vehicle tax credit, or new energy credits. tax for low-carbon fuels and green hydrogen,” Pavel Molchanov, an analyst at Raymond James, said in a research note Monday. “It remains to be seen whether any of these provisions will eventually be revived. in one form or another.”
The bill would have expanded tax credits for renewable energy, biofuels, energy efficiency and electric vehicles. The bill also included increased tax credits for power plants and other facilities using carbon capture technologies, as well as new tax credits for energy storage, transmission projects and generation. of hydrogen.
“This is our last and best chance to fight the climate crisis,” Lori Lodes, executive director of clean energy lobbyist Climate Power, said in an email. “Our country, our economy, and future generations can no longer afford Congress to kick the streets.”
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